Fundamental Analysis: Gold has surged to over a two-week peak today, catalysed by a softening dollar amid market speculation that the Federal Reserve may halt interest rate hikes.
Spot gold reached $1,987.79 per ounce, buoyed by a more than 2-1/2-month low in the U.S. dollar and near two-month low yields on U.S. 10-year Treasuries.
The upcoming Fed minutes are in the spotlight for further cues on policy direction. Lower interest rates reduce the opportunity cost of holding non-yielding bullion, making gold a more attractive investment.
Technical Analysis and Signal Update: XAU/USD has shown strong bullish momentum, aligning with our morning prediction and moving towards our third daily target.
Pivot Point: 1977.18
Current Trend: Uptrend with prices above pivot and MAs, signaling a bullish bias.
Volatility: Moderate to high, as indicated by the wide Bollinger Bands.
Moving Average (MA): Price above MA suggests bullish continuation.
Ichimoku Analysis: Not specified, but a price above the cloud would affirm bullish sentiment.
RSI: Neutral, hinting at sustained momentum without immediate overbought conditions.
Bollinger Bands: Price at the upper band indicates bullish strength but watch for potential retracement.
Trade Direction: BULLISH
Trade Probability: Approximately 70-75% for a successful bullish outcome. 🎯 Profit Targets:
1st Resistance: 1988.66
2nd Resistance: 1996.27
3rd Resistance: 2007.75
❌ Stop Loss Guidelines:
Buy: Set the stop loss below 1st Support at 1969.57.
Actionable Suggestion: Consider a long position with the outlined stop loss and profit targets. Stay vigilant for any signs of trend reversal or increased volatility, ready to reevaluate as necessary.
Conclusion: With the dovish turn of the Fed and geopolitical tensions easing, gold's outlook is bullish. Investors should watch the Fed minutes closely for any indication of rate movements which could significantly impact gold's trajectory.
The technical indicators align with the fundamentals, suggesting a continuation of the bullish trend. As always, maintain a risk-aware approach and adjust to market changes promptly.
As with all investments, your capital is at risk. Investments can fall and rise and you
may get back less than you invested.